Nappon Co Has Two Products Named X and Y $\text { The following actual operating results were reported after the year was over: }$

question 37

Multiple Choice

Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 260,000 & \$ 360,000 & \$ 620,000 \\\text { Variable Costs } & 156.000 & 180,000 & 336,000\\\text { Contribution Margin } & \$ 104,000 & \$ 180,000 & \$ 284,000 \\\text { Fixed costs } & 130,000 & 108,000 & 238,000\\\text { Operating Income (Loss) }&\$(26,000) &\$72,000&\$46,000\\\text { Selling Price per unit }&\$130.00&\$60.00\end{array}$

$\text { The following actual operating results were reported after the year was over: }$

$\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 202,500 & \$ 467,500 & \$ 670,000 \\\text { Variable Costs } & 117.000 & 212,500 & 329,500\\\text { Contribution Margin } & \$ 85,500 & \$ 255,000 & \$ 340,500 \\\text { Fixed costs } & 140,000 & 108,000 & 248,000\\\text { Operating Income (Loss) } & \$(54,500) & \$ 147,000 & \$ 92,500\\\text { Units Sold } & 1,500 & 8,500\end{array}$ The sales quantity variance for Product Y is:

• A) $4,000 favorable.
• B) $25,000 favorable.
• C) $26,000 favorable.
• D) $45,000 favorable.
• E) $52,000 unfavorable.

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Definitions:

Moral Standards

Principles or norms of behavior that distinguish between acceptable and unacceptable actions, often based on societal or personal beliefs.

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Refers to the ethical and societal duty of a company or organization to act in the best interests of their employees, stakeholders, and the community, often encompassing environmental stewardship and social responsibility.

GSTC

The Global Sustainable Tourism Council, which establishes and manages global standards for sustainable travel and tourism.